Brooklyn Cooperative votes to Remain Affordable

Brooklyn Cooperative votes to Remain Affordable

Members of St. James Place Towers, a 326-unit limited equity cooperative developed under the Mitchell-Lama program in New York, has voted to remain as a limited equity cooperative. The Mitchell-Lama program provided a low-interest 40-year mortgage and property tax relief. Once the mortgage is paid off, the cooperative can go market rate or convert to a condominium, but doing so would end the property tax abatement and raise monthly carrying charges, which in turn could cause displacement of members with modest incomes.

New York City provides a three-step process for conversion of Mitchell-Lama cooperatives. First, the owners must vote to approve preparation of a feasibility study. St. James Place Towers members did that in November. The second step is a vote to file a conversion plan with the state Attorney General. If that vote is successful, then a third vote is taken after the plan is filed. St. James cooperators voted against the second step in February, so the third step was moot. All three votes require approval of two-thirds of the members.

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Brooklyn Cooperative votes to Remain Affordable

Brooklyn Cooperative votes to Remain Affordable

Members of St. James Place Towers, a 326-unit limited equity cooperative developed under the Mitchell-Lama program in New York, has voted to remain as a limited equity cooperative. The Mitchell-Lama program provided a low-interest 40-year mortgage and property tax relief. Once the mortgage is paid off, the cooperative can go market rate or convert to a condominium, but doing so would end the property tax abatement and raise monthly carrying charges, which in turn could cause displacement of members with modest incomes.

New York City provides a three-step process for conversion of Mitchell-Lama cooperatives. First, the owners must vote to approve preparation of a feasibility study. St. James Place Towers members did that in November. The second step is a vote to file a conversion plan with the state Attorney General. If that vote is successful, then a third vote is taken after the plan is filed. St. James cooperators voted against the second step in February, so the third step was moot. All three votes require approval of two-thirds of the members.

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